JP Morgan exec challenges CCPs over skin in the game

"Why wouldn't you put up... all of your capital?" asks Olsen

jp-morgan-canary-wharf
JP Morgan is pushing CCPs to contribute more default capital

Amid a growing clamour for clearing houses to stump up more loss-absorbing capital, the head of JP Morgan's clearing business has suggested central counterparties (CCPs) should allow all their capital to be wiped out before emergency measures impose losses on end-users.

"For all of our customers, we put all of our capital between a default and the clearing house – 100%. It doesn't stop there, though. We are also asked to contribute to the guarantee fund for risks we didn't introduce," said Dave

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: